Chapter 9: Warnings and Risks
What you have read about penny stocks is this: the truth. We didnt sugar coat anything for you. We didnt provide you with false hope. If indeed you want to make a killing on penny stocks, you simply must take the time to do your homework thoroughly and use our strategy to make it happen.
We can not leave you without providing you with some very serious warnings and guidelines about penny stocks.
Here, you will find some less than positive things about penny stocks, but again, learning how to notice these things will help you to make the best decisions to avoid them. Remember, you can do well with penny stocks by starting with learning about the bad first.
Not all penny stocks are traded on NASDAQ that much you should know for sure.
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This means that the company has a good amount of real business as well as solid equipment and a good amount of inventory.
By saying that it is risky, that means that it is more likely that the stock could lose ground. The most important thing to consider is the entire package. The end result is that those that are holding the penny stocks can sell them back with no likely possibility of breaking even or they have nothing left. Some brokers will encourage you to write them a blank check, allowing them to use the funds that you have put aside to invest in any way that they want to. You really need to be able to understand each difference here.
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